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The recent measures proposed by the Czech Republic's Ministry of Health will, in all likelihood, negatively affect the Czech pharmaceutical market. The introduction of reimbursement ceilings, blind bidding auctions and preferential prescribing will squeeze drugmakers' margins and shift some of the burden of healthcare spending onto the private sector. The outcome of similar measures in Hungary and Poland strongly supports our view that the business environment for drugmakers will worsen if these proposals are adopted. It is patients who, ultimately, will suffer.
Headline Expenditure Projections
Pharmaceuticals: CZK80.71bn (US$4.56bn) in 2011 to CZK79.76bn (US$4.2bn) in 2012; -1.2% in local currency terms and -7.1% in US dollar terms.
Healthcare: CZK298.49bn (US$16.88bn) in 2011 to CZK297.87bn (US$15.831bn) in 2012; +0.4% in local currency terms and -8.4% in US dollar terms.
Medical Dev ices: CZK26.51n (US$1.50bn) in 2011 to CZK26.91bn (US$1.43bn) in 2012; +1.5% in local currency terms and -4.6% in US dollar terms. Forecast moderat ely down due to macroeconomic factors.
Risk/Reward Rating : The Czech Republic retains its leading position in the CEE RRRs in Q113, after displacing Poland in our Q412 assessment. Despite leading in our regional RRR table, the outlook for growth for the Czech pharmaceutical market is not particularly robust, as a result of pricing pressure, impeded market entry and increasing generic substitution. An increase in VAT and a stringent reference pricing system have affected sales and hit manufacturers' margins respectively.
Competitive Landscape
The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.